Positive cash flow is still important if you hold, but not as a means to make your profits but rather as an "insurance policy" to let you hold through a downturn if need be and realize those long term rent and price appreciation if they materialize like they historically have in LA.Lastly, if you come across a smokin' deal in the right time frame and a 1031 works out for you, great, but be careful not to let the tax tail wag the investment dog ... if you wouldn't buy the property without the 1031 then do buy it with a 1031.

I went into the backyard which has a privacy fence when I heard a dog barking that I didn't recognize.

So I have a dog in this issue is why I've rattled on.  

Q: As they have a husky dog, which means in the end of the lease there might be (hopefully not of course) some repairs to be done, is there any specific rules with active military regarding security deposits? 

Plus Im trying to bird dog for someone here and I cannot open their site nor will my photos download to my computer in a format that is sendable to anyone.  

You need some cash to get started.If you are short on cash, the best way to get started is bird dogging for the dominant wholesaler in your market.

Why don't you try and find a local investor and "bird-dog" for them?

I am really interested in becoming a bird dog but I want to know how effective it is.

From what I can tell, I, as an agent will be similar to an investor's "bird dog" when it comes to finding deals.

All I ask is that you get with someone who is experienced at it and work with them as a bird dog until you learn what you are doing or invest in good training so that you do it properly.